GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
108.08 USD
-0.23 (-0.21%)
108.08 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 55 industry peers in the Construction & Engineering industry. GVA has an average financial health and profitability rating. GVA is evaluated to be cheap and growing strongly. This does not happen too often! These ratings would make GVA suitable for value and growth investing!
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
Each year in the past 5 years GVA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.40%, GVA is in line with its industry, outperforming 58.18% of the companies in the same industry.
With a decent Return On Equity value of 15.79%, GVA is doing good in the industry, outperforming 63.64% of the companies in the same industry.
GVA has a Return On Invested Capital of 6.20%. This is comparable to the rest of the industry: GVA outperforms 52.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 17.30%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA has a Profit Margin of 4.31%. This is in the better half of the industry: GVA outperforms 61.82% of its industry peers.
GVA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 6.08%, GVA is in line with its industry, outperforming 56.36% of the companies in the same industry.
With a Gross Margin value of 16.39%, GVA perfoms like the industry average, outperforming 49.09% of the companies in the same industry.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
The number of shares outstanding for GVA has been reduced compared to 1 year ago.
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.52 indicates that GVA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.52, GVA perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
The Debt to FCF ratio of GVA is 3.86, which is a good value as it means it would take GVA, 3.86 years of fcf income to pay off all of its debts.
GVA has a Debt to FCF ratio of 3.86. This is in the better half of the industry: GVA outperforms 67.27% of its industry peers.
GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio of 0.84. This is comparable to the rest of the industry: GVA outperforms 43.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.52 |
ROIC/WACC0.67
WACC9.24%
2.3 Liquidity
A Current Ratio of 1.21 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Current ratio (1.21) which is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
GVA's Quick ratio of 1.12 is on the low side compared to the rest of the industry. GVA is outperformed by 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.71% over the past year.
Measured over the past years, GVA shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 21.70% on average per year.
The Revenue is expected to grow by 9.43% on average over the next years. This is quite good.
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.41 indicates a rather expensive valuation of GVA.
87.27% of the companies in the same industry are more expensive than GVA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.46. GVA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.85, which indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 89.09% of the companies are valued more expensively.
GVA is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaper than 83.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GVA is valued cheaper than 87.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.62 | ||
| EV/EBITDA | 12.6 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 21.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.56
EPS Next 2Y26%
EPS Next 3Y21.7%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.49%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.67. GVA pays more dividend than 87.27% of the companies in the same industry.
With a Dividend Yield of 0.49, GVA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
12.45% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP12.45%
EPS Next 2Y26%
EPS Next 3Y21.7%
108.08
-0.23 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.34%
Inst Owner Change3.24%
Ins Owners1.11%
Ins Owner Change-0.65%
Market Cap4.72B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts82.86
Price Target138.21 (27.88%)
Short Float %10.32%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)4.77%
PT rev (3m)9.27%
EPS NQ rev (1m)-3.59%
EPS NQ rev (3m)-11.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.68%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.41 | ||
| Fwd PE | 16.85 | ||
| P/S | 1.11 | ||
| P/FCF | 13.62 | ||
| P/OCF | 10.2 | ||
| P/B | 4.08 | ||
| P/tB | 8.09 | ||
| EV/EBITDA | 12.6 |
EPS(TTM)5.87
EY5.43%
EPS(NY)6.41
Fwd EY5.93%
FCF(TTM)7.94
FCFY7.34%
OCF(TTM)10.59
OCFY9.8%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.48
PEG (5Y)0.56
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.52 |
F-Score7
WACC9.24%
ROIC/WACC0.67
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.6%
EPS Next 2Y26%
EPS Next 3Y21.7%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year11.61%
Revenue Next 2Y10.53%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.85%
EBIT Next 3Y40.86%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 8 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Undervalued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 18.41 and the Price/Book (PB) ratio is 4.08.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.